State-run BHEL surged over 6 per cent on Thursday after the capital goods manufacturer reported strong growth in orders for 2015-16 financial year.
In a statement to the Bombay Stock Exchange, BHEL said that it had bagged orders worth Rs 43,727 crore in FY16 as compared to Rs 30,814 crore last year.
Tarang Bhanushali, AVP-Research at IIFL said "The positives of the result is the strong order inflows the company has reported."
BHEL's order in Q4 alone stood at Rs 15,700 crore compared to IIFL's estimate of around Rs 10,000 crore.
The New Delhi-headquartered company said its provisional net loss for last fiscal is Rs 877 crore on revenues of Rs 26,702 crore.
"The bottom-line is pretty much in-line with our estimates....execution continues to remain quite subdued which we have seen over last three quarters," Mr Bhanushali told NDTV Profit.
He said BHEL's execution would pick up from the second half of this fiscal, which could boost the company's earnings.
IIFL has an "accumulate" rating on the stock with a target price of Rs 125.
BHEL shares have been weighed down in last one year by its huge write off of bad debts. In last one year, its shares have corrected 50 per cent compared to nearly 14 per cent correction in the broader Sensex.
Mr Bhanushali however cautioned that there could be some more debt write offs in the first quarter of this fiscal.
As of 2.45 p.m. BHEL shares traded 6.37 per cent higher at Rs 121.15 apiece compared to 0.51 per cent correction in the Sensex.
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